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14-Nov-2019 02:47 by 8 Comments

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Ø The particulars required to be entered in the Register of Directors under section 303 will be entered with respect to each director immediately after the incorporation of the company.

The first directors are usually named in the articles of association or are appointed by the directors.In that case, regulation 64 provides that the names of the first directors shall be determined in writing by the subscribers of the memorandum or a majority of them.In such a case, the subscribers must determine the names before or at the incorporation of the company and give intimation thereof to the Registrar by Form No.The first directors shall hold office till directors are appointed in accordance with the provisions of section 255 at the first general meeting held after the date of incorporation.However, the meeting shall be held before the date of holding the first annual general meeting of the company.A general notice of the interests under section 299 will also be given in Form No.24 AA prescribed under the Companies (Central Government’s) General Rules & Forms, 1956.

Appointment of first directors at a general meeting A public company and a private company which is a subsidiary of a public company must hold an extra ordinary general meeting before the first annual general meeting and appoint the first directors by passing ordinary resolutions.

In the absence of any contrary provision in the articles of association of a private company regarding the appointment of first directors, the first directors who have been appointed under the articles may hold office till they are duly appointed at the general meeting held before the holding of the first annual general meeting of the company.

In the case of Swapan Dasgupta v Navin Chand Suchanti (1988) 64 Comp Cas 562 (Cal), the Calcutta High Court held that it is advisable that in the case of a private company there should be clear provisions regarding the appointment of first directors in the articles of association of a company.

Therefore, a private company is free to provide in its articles the manner of appointment of first directors.

The articles can also provide that the first directors shall continue to hold office until their office becomes vacant by resignation, removal, and death etc.

1/95 14/6/94-CL-V, dated 16 February, 1995 advised that at least one of the promoters of the company, whose names were mentioned in the application for availability of the company’s name, must be the first director of the company.

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